equipment finance & leasing

Frequently asked questions

1. What does personal Service include?
2. Are your rates competitive?
3. Do you provide finance for new businesses?
4. Over what period is finance available?
5. Do you provide finance for second-hand equipment?
6. Do you provide sale and leaseback facilities?
7. Are bank statements required?
8. What is the situation if I have been in arrears on certain loans?
9. Do I need to have my accounts up to date in order to secure finance?
10. Do you provide finance for non-profit organisations?
11. Is the interest rate fixed for the period?
12. Can I finance an asset purchased over seas?
13. What are the advantages of leasing?
14. Insurance?
15. Are payment protection facilities available?
16. What are the implications of the current credit crisis on leasing?

What does personal service include?

At Finance Company of Ireland we try our utmost to provide personal service through our team of skilled financial consultants. Your application will be dealt with by your area representative who will be available to you until the transaction is complete. It may be a straight forward leasing agreement where the turnaround will be less than 24 hours or perhaps a commercial mortgage which will require more input from both us and you. Either way our business is built on delivering you financial products to meet your needs. Please review the about us link at the bottom of this page to learn more about our group.

Are your rates competitive?

Having access to Irelands leading lenders and dealing with leasing and finance transactions on a daily basis places us in a unique position to deliver competitive finance for you. The recent turbulence in financial markets has made pricing more difficult and indeed dearer as lenders are paying more for the money they borrow .However the market remains competitive and this keeps lender rate sin check for your benefit.

Do you provide finance for new business?

Unfortunately in general the answer to this frequently asked question is no as our lenders shy away from set ups. However we are quite happy to advise start ups on appropriate funding sources and mixes for new ventures, should our experience be required. There are some exceptions to this rule; for example in a situation where there is significant equity being input into the business or there are very strong guarantees in place. The vast majority of our business is with experienced businesses with good credit histories.

Over what period is finance available?

Term from 2-5yrs

Do you provide finance for second-hand equipment?

In today’s market it is difficult to obtain finance for second hand equipment other than vehicles . The slow down in construction activity has crested a surplus of construction equipment and values can be very difficult to assess. Our lenders do not like situationswhere equipment values are not easily ascertainable.

Do you provide sale and leaseback facilities?

Where a company has recently purchased business assets and wishes to improve cash flow through sale and lease back, this can be accommodated subject to normal lending terms and conditions and value.

Are bank statements required?

Where there is insufficient evidence of a finance history and up to date accounts are not available, bank statements may be required to satisfy our underwriters in regards to repayment capacity.

What is the situation if I have been in arrears on certain loans?

Generally we are unable to provide finance where there has been a history of arrears.

Do I need to have my accounts up to date in order to secure finance?

Not necessarily but current information helps.  For larger deals accounts are required in addition to an Auditor's reference.

Do you provide finance for non-profit organisation?

Yes - We provide finance for non-profit organisation whether charities or clubs etc subject to lending criteria terms and conditions.

Is the interest rate fixed for the period?

Yes - Interest rates/repayments are fixed for the term of the agreement.

Can I finance an asset purchased overseas?

An asset purchased overseas can be financed subject to normal criteria and our underwriters satisfaction with the supplier. Quite significant element of the larger assets we finance are from outside Ireland.

What are the advantages of leasing?

• Tax efficient - lease payments are allowable against tax
• Improve cash flow
• Addition to existing credit lines
• Repayments fixed for agreement period
• Can be organised in 24 hours
• Helps match cash flow with income
• Does not tie up scarce resources

Insurance

Assets need to be insured by the Lessee and the interest of the finance company noted on the policy.

Are payment protection facilities available?

For sole trader and small business, payment protection facilities are available. This can prove an expensive form of insurance but in certain circumstances may be very important. For example, a sole trader who has taken out a lease on some excavation equipment may be unable to meet lease payments if he or she is involved in an accident. In situations like this payment protection cover will ensure that the lease payments are met when the individual is unable to work .Generally cover clicks in after thirty days absence through an accident or illness .

The recent credit crunch is bad news for all of us.

Originally a news story from across the Atlantic the implications are now been felt far and wide. Lenders have less money to lend and are more cautious with whom they lend to. Interbank rates are remaining way above euribor and the clear implications are for an increasing interest rate environment. Good credit history is an absolute requirement for all current lending activity.

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Address: 97 Malahide  Road Dublin 3 | 2 Argyle Square, Morehampton Road, Dublin 4
Dublin - Cork - Kerry 
Tel: 01 8327250 - Fax: 01 8327273 - Email: info@financeirl.ie